Dhaka keen to use Myanmar gas to produce fertilizer

FE Team | Published: November 13, 2007 00:00:00 | Updated: February 01, 2018 00:00:00

FE Report
Dhaka has shown its interest to use Myanmar gas to produce fertiliser in Bangladesh and export it back to that country.
The proposal was made by the Bangladesh delegation at the second Myanmar- Bangladesh Joint Trade Commission meeting, held in Dhaka Monday to boost bilateral trade relations between the two countries.
The Myanmar side responded to the proposal, saying that the plant will be set up in Arakan State to produce fertiliser. But the Bangladesh side declined to accept the Myanmar opinion and argued in favour of its proposal, meeting sources said.
The meeting also agreed to strengthen bilateral cooperation in development of energy sector.
"We have discussed the issues of utilisation of Myanmar gas to produce fertiliser in Bangladesh aiming to narrow the existing trade gap between the two countries," Commerce Secretary Feroz Ahmed told the FE after the meeting.
The volume of bilateral trade between the two countries is still insignificant because of lack of proper initiatives. The balance of trade, according to officials, has remained in favour of Myanmar over the years.
Bangladesh exported goods worth US$5.16 million to Myanmar in fiscal 2005-06 fiscal against its imports worth $29.63 million during the period.
Feroz Ahmed led a 21-member Bangladesh delegation at the meeting while Deputy Commerce Minister of Myanmar Brigadier General Aung Tun headed a 10-member team.
The meeting reviewed the overall bilateral cooperation including investment in Myanmar's agricultural sector, strengthening of border trade, establishment of direct shipping link and easing of visa regulations for Bangladeshi businessmen.
The meeting agreed to resolve problems for opening letters of credit (LCs) directly through forming a working group comprising officials of both countries' central banks for strengthening the bilateral trade relations.
During the meeting, Bangladesh also proposed to double the amount of bank draft for each transaction from the existing $10,000 to $20,000 under a border trade agreement (BTA) to boost bilateral trade between the two countries.
The Myanmar side supported the proposal with suggestion on sending a formal letter to the concerned ministry in Yangon, the sources added.
Currently, the state-owned Sonali Bank of Bangladesh and the Myanmar Economic Bank (MEB) are issuing such drafts in line with the existing border trade agreement.
Bangladesh sought access for the country's pharmaceutical products to the market in Myanmar and reduction in registration time while the visiting delegation proposed to set up joint venture pharmaceutical industries in Myanmar.
The progress in the construction of direct road link between Bangladesh and Myanmar was also discussed at the meeting, the sources noted.
Bangladesh and Myanmar signed an agreement September last on the basis of a memorandum of understanding reached in 2004 to build a 133-kilometre highway linking Buthidaung in Rakhine State of Myanmar and Ramu in Bangladesh to promote border trade.
The meeting agreed to strengthen direct shipping link through renewing the existing coastal and maritime shipping agreement between the two countries.